In a landmark announcement, the National Pension Commission (PenCom), has given renewed hope to retirees across Nigeria by declaring that all outstanding arrears—covering both pension payments and gratuities—will be fully settled by December 2025.
What Has Been Announced
At a two‑day sensitisation workshop held in Owerri, jointly organised by PenCom and the National Salaries, Incomes and Wages Commission (NSIWC), PenCom’s Director‑General, Omolola Oloworaran, represented by Mr. Samuel Uwandu, indicated that:
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The Federal Government has approved a ₦758 billion bond for PenCom, which will be cashed in and used to clear unpaid gratuities and pension arrears.
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Once the bond is converted to cash, all gratuities will be paid in full by December 2025, and everyone owed arrears will be fully settled.
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PenCom is also in talks to increase retirees’ benefits from the current 75% of final emoluments up towards 100%. That is, the aim is that retirees may receive their full pre‑retirement salary (or close to it) as pension.
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For workers retiring between October–December 2025, PenCom assures that their benefits will be received before December 15.
Why this Matters
This announcement is significant for a number of reasons:
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Longstanding Backlog: Many retirees have been waiting years for gratuities or arrears to be paid. Clearing these will ease the financial burdens of retired civil servants and other public‑sector workers.
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Improved Welfare for Retirees: The proposed move from 75 % to 100 % of final salary as pension brings the possibility of a more dignified retirement for many.
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Trust in Pension Administration: By converting the bond and setting a clear timetable, PenCom is signalling stronger accountability and responsiveness—important for public confidence in the pension system.
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Timeliness of Benefits: Ensuring that those retiring later in the year receive their benefits quickly means fewer retirees stuck waiting for long‑delayed payments.
Important Caveats/Things to Watch
While the announcement is cause for optimism, some caution and monitoring are needed:
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Conversion of the Bond: The announcement hinges on that ₦758 billion bond being converted to cash and released. Any delay could affect the December target.
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Complete Coverage: It remains to be seen whether all retirees (across all states, agencies, contributory vs non‑contributory schemes) will be covered without exception.
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Implementation of Benefit Increase: Moving from 75% to 100% of final emoluments requires legislative and regulatory changes. PenCom noted that this will involve the National Assembly.
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Timeliness of Payment: Prior announcements have sometimes been delayed; the proof will be in the actual cash‑in‑hand of retirees by December.
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Transparency: Retirees and pensioners’ associations will likely monitor closely to ensure payments match the promises.
What Retirees and Stakeholders Should Do
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Retirees should verify their records: ensure their Retirement Savings Account (RSA) or pension records are up to date, bank account details correct, and all documentation in order.
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Stay informed: Monitor announcements from PenCom, NSIWC, and pensioner unions for updates.
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Engage with pensioner associations: Bodies such as the Nigeria Union of Pensioners (Contributory Pension Scheme Sector), (NUPCPS) are already welcoming the announcement and can provide guidance.
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Be realistic but hopeful: While the goal is full payment by December, retirees should prepare for follow‑through and ask questions if delays occur.
Final Thoughts
This pledge by PenCom represents a meaningful step forward in resolving long‑standing pension and gratuity issues in our dear Nigeria. If executed fully, it will have a major positive impact on the welfare of retirees.
However, as always with large‑scale government commitments, delivery will be the key. Retirees, unions, and the public will be watching closely to see that this December target is met.